Who Is A Weekly Swing Trader?
A weekly swing trader is an active swing trader that only uses the weekly chart trading
setups for swing trading purposes. He or she is also a specialist weekly chart trader
that utilizes an explicit top-down trading method.
After screening for financial instruments on the weekly chart, the weekly chart swing trader
performs a smart technical analysis of each security before implementing a meticulous
multiple-time-frame trading strategy. He or she does not trade in a void but knows his (or her)
high probability trading setups. This swing trader also understands the risk-reward reward
ratio of each far above the ground probability trade.
He (or she) has a plan, method and knows the attributes of the financial instrument he (or she)
is about to trade. The weekly chart swing trader is a technical trader who combines both the
technical and fundamental analysis. Finally, he (or she) is also an all-round swing trader who
understands how to avoid the seven top trading mistakes.
Image = a male weekly swing trader is at his desk
looking at his swing trading screen.
Weekly Swing Trader Step One
The priority of a weekly swing trader is to validate weekly chart high probability trade setups
on a larger period (monthly, quarterly and yearly chart).
For example, if one identifies a bullish weekly high probability trade setup, one would prefer to
have a bullish market pattern on the monthly chart. In fact, one will agree that there are more risks
if the monthly chart market pattern were bearish. Mainly, the weekly swing trader will always confirm
that the trade structure aligns with the superior periods’ market patterns. This medium term market
player also spends more than fifty percent of his (or her) time checking both the authenticity of the
technical and fundamental of the weekly graph trading setup.
To guarantee that no stone is left unturned, a weekly swing trader ought to ask the following
1/ is the setup on or near a key level?
2/ does the trade setup align with the higher time frames?
3/ is the structure on the edge?
4/ does it offer a rewarding risk-reward ratio?
5/ does the structure align with the current market environment?
6/ is the setup violating the trading triangle?
7/ is the structure in line with the weekly graph market pattern?
Those are few questions among others one must solve to certify that
one is not trading a hopeless weekly trading structure.
In reality, the foundation of a profitable swing trading begins at the first step.
WARNING (this article is written by George Beaulieu founder of stochastic-macd.com)
Be always defensive and strict. Be ready to discard trade setups that are too precarious.
In no doubt, there will be a much better trading opportunity around the corner.
Lastly, never go to step two if the first step fails.
Weekly Swing Trader Step Two
The old way of swing trading is now obsolete. Those days when a technical swing trader will place
a trade as soon as there is a trade setup are gone. The financial market is now more unpredictable
and trickier than before. Therefore, prudent weekly swing traders are less forceful than they were
in the past. Though they are agile, they are also very patient. They wait for the appropriate moment
before they take the trade. Indeed, there is no need to rush.
In addition, after they have found a high probability trade setup, they commonly switch to the
four-hour graph for the trading signal.
Note that there are two types of trading signals: direct and indirect.
technical indicator. It is paramount that the price confirms all indirect trade signals because they are just
warnings. Truly, the price always generates direct trading signals. Subsequently, a weekly swing trader
will hang around for a direct trading signal on the four-hour chart before switching to the low-risk entry
time frame. Author = George Beaulieu of http://www.stochastic-macd.com
Furthermore, the trading signal must not infringe the weekly chart’s market pattern. One will make sure
that a bullish trading signal is on or near a support or resistance that changes into support. On the other
hand, bearish trading signals ought to be at a resistance or support that turns into resistance. All in all,
trading signals ought to be on the edge at a critical price level or trend line.
Weekly Swing Trader Step Three
The biggest challenge a day or swing trader ought to surmount is to time the financial market painlessly,
without stress or regret. For example, one buys at X price a stock, but one may lose before the price
begins a dynamic bullish progression. Options may expire, stop loss may capitulate or one may not cope
with the added stress and being forced to close the trade prematurely with a loss before the price rises.
Nevertheless, a weekly swing trader can control the risk, and be on top of his (her) game without forcing
the market. For that purpose, he or she will enter the trade on the fifteen-minute time frame.
1/ If the signal fails on the four-hour chart, one will not bother to enter the trade.
2/ The entry must align with the four-hour graph market pattern.
3/ The entry is on or near a critical price level.
4/ The entry is also a direct secondary signal on the fifteen-minute time frame.
5/ The entry minimizes the risk, plus it is at low-risk point on the edge.
6/ If one already enters the swing trade and signal fails (on the four-hour time frame), one must exit
the position and cut losses without blinking (or second thought).
To become a weekly swing trader, one must adopt the mindset of a professional swing trader.
That mindset requires discipline and patience. The discipline to validate a weekly chart trading setup
before the implementation of a top-down trading method (that combines the weekly, four-hour and
fifteen-minute charts). The patience to adhere to the trading triangle without violating the market
Certainly, one does not grow to be a competent weekly swing trader in one week; it takes time.
Only those who stay away from the seven worst trading mistakes will steadily reach a mature
weekly swing trader's standard.